As opposed to developed nations like the US, the Jamaica budget 2011-12 focuses on creating the perfect balance between available resources and economic necessities. The government has been successful in bringing down its investment rates to their lowest in the last 40 years and the 2011-12 budget will aim to continue the positive trend.
Highlights of Jamaica Budget 2011-12:
The major area of importance for the 2011-12 budget is to improve the financial set-ups of the national government.
The 2011-12 Jamaica budget has allocated 3.5 billion dollars for reduction of the gas tax.
For 2011-12 Jamaica s budget accounts for 43 percent of the GDP, compared to 56 percent in 2007 fiscal.
In 2011-12 the Jamaican government aims at borrow no more than 39 percent of the available banking credits, which is a significant reduction compared to 64% of the 2006-07 fiscal.
Jamaica Budget 2011-12 : Goals:
The Jamaica budget 2011-12 has been planned with several goals:
The budget will look to eliminate fiscal shortfalls and generate the surplus that will safeguard Jamaica against natural disasters and further financial crises.
Reduce governmental debt for allocating more resources for investment, jobs and business.
Reduction of debt servicing costs and ratio of debt to GDP so that sectors such as education, health, justice and security, and infrastructure can be allotted more money.
Improving the tax structure to make sure that it is more equitable and helps with the increase of jobs and opportunities for business and investment.
To make sure that the bureaucracy is better organized, provides improved service, and focuses more on the jobs and business sector.
To make the government more accountable and transparent so that the taxpayers have a good idea of its operations and financial management.
To make Jamaica competitive from a global perspective focus will be on areas where more investment and jobs can be created.
Expectations from Jamaica Budget 2011-12:
One of the major challenges for Jamaican economy is creating ideal conditions for economic growth and continued investment as only then the national government will be able to properly deal with the requirements of the economically backward section of the population.
This has even led to several leading financial organizations closing their operations the business sector of Jamaica has been affected as well and investment sentiment has become negative. It is expected that the 2011-12 Jamaica budget will deal with these issues adequately.
According to the former Jamaican President, Bruce Golding, the government has never accepted its responsibility and has continued to borrow to cover the deficit. At present the Jamaican government spends approximately 48.34% of its expenditure in debt repayment and servicing.
In the previous fiscal the inflation was 7.8 percent and for the last 6 months the annualized rate of inflation was 6.2%. Through the 2011-12 budget the government will look to maintain such lower rates of inflation as well as the present levels of foreign reserves and exchange rate.
The basic aim of the Jamaica government in 2012 is to create the ideal environment for both major and small investors in critical sectors such as: